This issue of Almond Facts reflects on highlights from the 112th Annual Meeting including special messages from President/CEO, Mark Jansen and Chairman of the Board, Dan Cummings. The issue also includes an article from Ag Council on shaping ag issues and working together, while Dr. Dan Sonke gives greater detail on the Climate-Smart $45 million USDA grant.
NEWS, VIEWS, AND INDUSTRY INSIGHT
NOVEMBER–DECEMBER 2022
Seasons Greetings
The Many Benefits of OSIP Involvement
Reflecting on the 112 th Annual Meeting
Cozy Recipes to Make the Holiday Season Sweet
Blue Diamond Growers does not endorse or verify statements made by advertisers within this publication.
NOV–DEC 2022
Contents
14 FIELD TEAM 16 NEWS IN A NUTSHELL 24 CORNERING THE MARKET 26 GROWING THE GOODNESS 30 ADVOCACY REPORT 32 ANNUAL GROWERS MEETING 40 CULTIVATING SUSTAINABILITY 44 IN YOUR ORCHARD 54 CLASSIFIED ADS
Features
6 President’s Corner President/CEO Mark Jansen’s 112 th Annual Meeting address and his confidence in the co-op’s bright future. 30 Advocacy Report Ag Council President, Emily Rooney, explains how the organization looks at the long game, and considers how to shape ag issues. An effective approach is to demonstrate that the policies we seek to implement are not just good for agriculture, they are good for all Californians. It’s not just about us, it’s about what’s best for everyone.
32 Blue Diamond ’s 112 th Annual Meeting Blue Diamond hosted their first in-person annual meeting since 2019. Catch up if you missed the amazingly informative grower sessions and highlights. 40 Details on the $45 million USDA Grant Learn all about USDA grant eligibility, program length, funding, process, and a lot more in this special sustainability article by Dr. Dan Sonke.
ON THE COVER: This holiday season get cozy in front of the fireplace with a glass of Almond Breeze ® Nog!
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NOVEMBER–DECEMBER 2022
BOARD OF DIRECTORS Dan Cummings, Chairman of the Board | Chico Stephen Van Duyn, Vice Chairman | Modesto Dale Van Groningen | Ripon John Monroe | Arbuckle George A. te Velde | Escalon Nick Blom | Modesto Dan Mendenhall | Winton
Matthew Efird | Fresno Kent Stenderup | Arvin Joe Huston | Monterey Kristin Daley | San Francisco
OFFICERS Mark Jansen, President and CEO Dean LaVallee, Chief Financial Officer/ Chief Operating Officer
ALMOND FACTS STAFF Blue Diamond Growers Communications Department, communications@bdgrowers.com Jillian Luna, Managing Editor Mel Machado, Contributing Photographer Gray Allen, Advertising Sales 916.783.4334 & 916.765.3234
Blue Diamond , the world’s largest processor and marketer of almonds, exports to over 100 countries.
Almond Facts , established in 1922, is published bimonthly by Blue Diamond Growers , 1802 C Street, Sacramento, California 95811. Address all correspondence to the Editor, Almond Facts , P.O. Box 1768, Sacramento, California 95812. Advertising subscription rates provided upon request. Blue Diamond is a registered trademark and marketing brand of Blue Diamond Growers . Other registered trademarks are The Almond People, Smokehouse, Golden State, Celebration, From the Valleys of California, Confetti and Almond Facts . Blue Diamond Growers does not endorse or verify statements made by advertisers within this publication. Blue Diamond reserves the right to refuse advertising. All rights reserved. Reproduction in whole or in part without written permission is prohibited.
© Blue Diamond Growers 2022
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PRESIDENT’S CORNER
ANNUAL MEETING (NOVEMBER 16, 2022) PARTNERING FOR A SUSTAINABLE FUTURE CEO’s Speech
2022 was a year in which we all benefited from the strength of our relationships. Faced with unprecedented challenges, including January’s record levels of COVID infections in our plants, inflation levels we have not seen in 40 years, and broken global supply chains, our only course of action was to continue to build partnerships for a sustainable future. As has been our tradition, you will be introduced to a few of our everyday heroes who have built Blue Diamond partnerships. These exceptional professionals were heroic in the face of extraordinary challenges. The strength of our partnerships has allowed us to achieve amazing successes in the face of unexpected challenges. Our VP of Manufacturing, Jeff Hatfield, has led a team of 1,300 employees across three manufacturing plants. They remained continuously operational by leveraging our already strong safety culture to ensure team members felt safe at work. Being able to comply with a myriad of regulations across federal, state, and local jurisdictions added to the complexity. Fortunately, this is beginning to feel like past history. However, let us not forget, it was just January when, in our communities, we had the highest tested COVID levels. For their commitment to our mission, please join me in thanking Jeff and his 1,300 manufacturing team members across three campuses!
2022 was also the year when the world realized how fragile our global supply chains could become. We all heard about COVID shutdowns in China, rampant inflation, and the war in Ukraine. As you may know, the almond industry exports two-thirds of our crop and utilizes Oakland as its primary port. In the beginning, when there was a record lineup of ships that could not get unloaded, almonds were the first to suffer. Frustration increased knowing 70% of the vessels leaving to return to Asia were empty. A significant percent of ships skipped the port altogether. Our Blue Diamond VP of Supply Chain, Steve Schult, stepped into this crisis and partnered with everyone who could help, including California Department of Food and Agriculture, the CEO of Union Pacific Railroad and the Almond Alliance. Together, they collaborated to find new ways to get your almonds to market, including the now famous Almond Express. For his leadership in building partnerships, we offer a huge thanks to Steve Schult. The team’s innovation, partnership, and dogged determination allowed us to ship the 2021 crop. In the process we opened new pathways for the entire almond industry and California agriculture. Ultimately, we want the entire industry to be healthy!
Mark Jansen President & CEO
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ALMOND FACTS
One of Blue Diamond ’s big leaps forward continues to be in our Orchard Stewardship Incentive Program (OSIP). It might interest you to know that 40% of Blue Diamond acres are now enrolled in this program. To date, these growers have already earned $1.75 million in incentives for their efforts. This year, with significant thoughtfulness and validation, we published Blue Diamond ’s first sustainability report. We are proud of all the demonstrated progress we have made in sustainability and our efforts to build a compelling plan for the future. As a result of these efforts, the USDA awarded Blue Diamond a $45 million grant! Every great success requires leadership, and we are blessed with true sustainability leaders such as: VP of Membership, Mel Machado, Director of Sustainability, Dr. Dan Sonke, and Director of Government Relations, Alicia Rockwell. Thank you for your sustainability leadership. Six years ago in my presentation, I made the bold claim that Blue Diamond aspired to make Amazon one of our top five customers. At the time, it was not even in the top 75. Two years ago, with a little help from COVID shopping, we achieved our goal ahead of schedule. Good news! Amazon noticed our tremendous progress and we are now part of the Amazon Vendor Flex Program. Amazon Vendor Flex is an Amazon warehouse within a Blue Diamond warehouse from which we ship directly creating significant savings to Blue Diamond and strengthening our relationship with Amazon. Over many years, we have been planting the seeds of growth. We have built great partnerships in strategic markets around the globe. Last year, continuing a trend in international markets, we were fortunate to drive 17% growth! Almond Breeze ® has success stories in Asian, South American and European markets, and we received tremendous retail support. For their effort in bringing our Almond Breeze ® to world, I’d like to thank Dale Tipple and the entire International Retail team.
As you know, our Blue Diamond mission, our reason for being, is to maximize returns for you, our growers. Your faith in giving us your year’s work in the form of the almond crop is a tremendous responsibility. I have always considered our higher purpose, as a co-op, is to provide sustainable economics that allow our farm families to pass their farms to the next generation. This is especially important when almond prices are in a low cycle and your farming costs continue to rise. In this environment, our team members know that every penny matters. Our commitment has always been, and will always be, to continue to focus on how we can deliver better returns. When I started at Blue Diamond , the goal was to simply achieve competitive returns. Blue Diamond enjoyed a good track record of beating the competitive handlers by $.01 a pound. For the 2010 return, with a $.03 advantage, I vividly remember the many calls of congratulations, mostly saying, “Great return, Mark!” You, our growers, inspired the entire team to set the bar higher. Some will recall the goal of a dime, then $.15. For the 2020 crop, we cleared $.20. Knowing how important every penny is to our growers in this environment, for the 2021 crop, we set a new standard with a record $.27 advantage. Equally important, your total final payment represents an increase of $.20 a pound versus last year. When I was interviewing for the CEO role at Blue Diamond , our then board chair, Clinton Shick asked, “Mark, if selected, how long would you serve as CEO ? ” I responded, “10 years would be ideal.” Then my thinking was that 10 years is much longer than average, yet not to the point of staying too long. The first nine years flew by as we were committed to transforming this co-op into a global branded food company. Then came the great Sacramento plant fire. It was not the right time. There was way too much work to be done. In my 10 th year, the COVID pandemic began, and we focused on how to keep team members safe and plants running. To me, this was a leadership calling that was the most important of my business career. Clearly, it was not the right time.
7
NOVEMBER–DECEMBER 2022
PRESIDENT’S CORNER
In year 11, we got better at managing the pandemic, however, record inflation and the inability of California agriculture to export were new significant threats. Again, it was not the right time. In year 12, we built resilience into our manufacturing and innovation into our supply chains. While there will be new challenges, now is a good time for Blue Diamond to make a change in leadership. You will be comforted to know that the financial health of your co-op has never been stronger. You are familiar with the superior competitive returns, and equally important, Blue Diamond has an investment grade balance sheet that continues to grow stronger. This provides you, our growers, the certainty that you will always be paid on time. In addition, this financial health provides the means to reinvest in continuing the profitable growth of the co-op. The business strategy which has guided our success is well understood by the leadership of Blue Diamond . We have four unique businesses: consumer brands, licensee brands, ingredients and commodity that work together as cogs in driving the overall success for Blue Diamond . We call this our strategy flywheel. What makes this focused strategy work are the people of Blue Diamond . We have the best people! We compete against the Coca Cola ® and Pepsi ® companies of the business world and win.
thank for their years of leadership! Amongst their many accomplishments, their most important may be hiring and preparing the next generation to lead.
The financial strength, working strategy and management talent make this the right time for Blue Diamond to undergo a CEO change. For me personally, it is also the right time. Blue Diamond is a family business. You know how important family is to me. This summer, Carolyn and I will be empty nesters. Our oldest, Holly, is married and living in Chicago. Our middle child, Lindsey, is happily living and working in Denver. And our 6-foot-3 baby, Noah, will be going to college in Minnesota. This summer, we are looking forward to a big family trip, time at a Minnesota lake house and the freedom to attend our son’s college football games. The board has been equally thoughtful about this transition. It began over the summer after Chairman Dan tried to get me to stay on by offering to mow my lawn; I still appreciate the sentiment. In October, Blue Diamond announced, first to you our team members and grower- owners and then to the business world, that now was the right time. After the announcement was released, our Director of Communications, Lynn Machon came to me with some regret, saying “there is almost no interest from the press.” I responded, “perfect!” There is no drama so of course the media has limited interest. The truth is everybody knows that Blue Diamond is going from strength to strength. In the meantime, I am not going anywhere soon. My continued focus is leading Blue Diamond . Beyond that, I am partnering with the board
At Blue Diamond , great people, hire great people, who hire great people who are all committed to serving you, our grower-owners. The talent of Blue Diamond is exceptional, and it is many layers deep. We are blessed with an extraordinary executive team whom I
8
ALMOND FACTS
on the search. When the next leader is identified, I have committed to stay on to ensure a graceful transition. This will continue to be an extremely well planned and collaborative process. As this will be my last annual meeting presentation, my regret is that it is impossible to personally call out everyone deserving of thanks. Here are a few people that have been heroes to me and also to Blue Diamond : My first Blue Diamond hire was my executive assistant, Laura Elkins. Her organizational planning and communication skills have been a force multiplier to me. Her relentlessly positive energy has helped make Blue Diamond an even better place, especially for the board and me. Thank you, Laura. My second hire was our CFO, Dean LaVallee. He came highly recommended to me from the former CFO at Kraft. In hiring Dean, I told the board my expectation was that I would be getting a partner in running Blue Diamond . For the past 11 years, he has exceeded my expectations! It is only appropriate that Dean now has the COO title in addition to CFO. Dean, thank you for making me look good! Brian Barczak was hired to replace a Blue Diamond legend, Bruce Lish, as VP of Manufacturing. Brian transformed manufacturing, established a safety culture, and always showed up as a great teammate on the executive team. With demonstrated capabilities, his role expanded and today he is SVP of Global Supply. Brian, thank you for your extreme competence in leading over 80% of Blue Diamond ’s team members! Especially, through all the challenges of recent times. One of the secrets to enjoying your work is liking who you work for. What an honor to have the opportunity to work for California almond farmers. It is one of the best parts of being CEO at Blue Diamond . From almost 13 years ago, thank you to my first boss Clinton Shick and all the board members who hired me. Over the years, I am grateful that I have come to see many of you, our grower-owners, also as friends. Special thanks to Dick Braden, who served as an early mentor.
I am still excited to come to work each day and that would not be possible without a great board of directors. Thank you, Directors and a special thanks to Chairman Dan Cummings. The most important ingredient in any successful co-op is a strong board. Every year, I have closed my annual meeting remarks the same way. As I reflect over the past 12 years, and look into the future with our strong team, I confidently believe, for Blue Diamond , the Best is Yet to Come!
Mark Jansen President & CEO
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NOVEMBER–DECEMBER 2022
CHAIRMAN’S MESSAGE
Annual Meeting 2022 Chairman’s Speech On behalf of our entire co-op, I want to express our gratitude for Mark’s leadership over the last 12 years. His leadership of our robust annual five-year strategic planning retreats has been inspirational to the board and senior management and instrumental to the success we have achieved these past 12 years.
Our co-op’s commitment to sustainability holds special significance to me, personally. I’m proud to have been one of the original founders of Project Apis m . in 2006 and served as chairman of that board from 2006 to 2012. I’d like to recognize our own Christine Gemperle as a board member of Project Apis m . This year, Project Apis m . achieved an incredible milestone. To date, the nonprofit has funded $10 million in more than 150 research projects and forage programs with the single goal of protecting and improving honey bee health and vitality. I’m thrilled that Blue Diamond will further be collaborating with Project Apis m . as one of our partners through the $45 million grant awarded to us by the USDA for climate smart projects. This historic USDA grant is a fantastic example of what can be accomplished through collaborative partnerships between government and industry stakeholders. It demonstrates the importance of Blue Diamond ’s Political Action Committee (PAC). Our PAC works to engage and educate key federal and state legislators and policy makers on issues important to California’s almond industry and the sustainability of our planet. I want to point out that the definition of sustainability goes beyond environmental impacts on our planet, or in our Blue Diamond orchards and facilities. The concept of true sustainability is what our co-op was founded on in 1910.
During his tenure, Mark has gained great respect, not only from the board of directors, but from our grower-owners, employees, our business partners domestic and abroad, and our entire industry. Mark’s strategic vision and focus on expanding our global marketplace has positioned Blue Diamond extremely well for the future. He will forever be part of our Blue Diamond legacy. I’ve had the honor of serving as your District 1 Director since 2006, and Board Chairman since 2014. As most of you know I’m a proud, third generation Blue Diamond grower. My family has been part of this co-op for nearly 100 years, through good crop years and challenging ones, through the highs and lows of almond values. And I have to say, I don’t think I’ve ever been more optimistic about this cooperative’s future. The theme of our annual meeting and the co-op’s traditional annual report this year is “Partnering for a Sustainable Future.” As you know, this is a significant year for sustainability throughout our co-op. In fact, this year we officially rolled out our first stand-alone sustainability report that provides details and metrics about the great progress that has been made in our orchards and our facilities. I’m incredibly proud of our growers’ participation in the Orchard Stewardship Incentive Program (OSIP). When Mark asked all growers who have achieved OSIP diamond levels to stand up during the Annual Meeting, it was impressive.
Dan Cummings Chairman of the Board
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ALMOND FACTS
farmers and industry leaders. Blue Diamond fosters leadership in current and future Blue Diamond members through several different programs. The first is through our Blue Diamond Leadership Program, that since its inception with my inaugural class of 1994 has graduated more than 500 members. Last night we honored our 2022 Leadership Program class with a special graduation dinner. I’d also like to acknowledge and thank Kent Stenderup for serving as program chair. A second way we nurture future farmers is through our long-standing partnership with Future Farmers of America, or FFA. Many still have their blue jackets from their early years with the iconic organization that promotes education and excellence in agriculture. I’m proud that Blue Diamond Growers once again committed to match Giving Tuesday donations to FFA up to $25,000 to help raise funds for those distinctive blue jackets. The third way we support the next generation of ag leaders is by providing college scholarships to local high school students through the Blue Diamond Growers Foundation. I’d like to recognize John Monroe’s dedication and passion as president of the Foundation. This year, we lost a dear friend, Bob Weimer, who was District 7 board director from 2004–2017. Bob was the
The strength of our collective partnership is what sustains our future. Especially in crop years like we just experienced, where many of us growers faced significant challenges with weather and operational costs, the strength of this co-op helped sustain our farms, our livelihood. Mark talked about some of the incredible innovations we’ve made in finding new uses and markets for our almonds, and the hurdles we overcame with supply chain and shipping challenges. Those solutions were only possible because of the strong and dedicated leadership of our board of directors and our co-op leadership team. I want to assure you that our co-op’s leadership team will continue to be a dynamic force in the industry. When Mark approached me a few months ago to discuss timing of a transition, it’s true I really did initially try to talk him out of it. But we both agreed, as did the rest of your board, that the time is right, and the co-op is well- positioned for a leadership transition. The board’s CEO Succession Team has been hard at work, talking with incredible candidates — both internal to Blue Diamond and some external to our co-op, with strong CPG experience. I couldn’t be more optimistic about the future. I know we’ll find the right fit in our next CEO, someone who shares our Blue Diamond values and commitment to the sustainability of our co-op and its grower-owners’ needs. Be assured your board is committed to communicating progress with our grower community as succession updates are available. In keeping with that focus on our future, another key to the sustainability of our co-op and California’s agriculture industry is our ability to nurture the next generation of
inspiration and champion in creating the Blue Diamond Growers Foundation for the purpose of awarding scholarships to students from our almond growing regions who are seeking a four-year degree in an agricultural field.
To honor Bob Weimer’s contributions to Blue Diamond and to the almond industry, I’m proud to announce that Blue Diamond will match up to $50,000 to the Foundation to broaden the impact of our Scholarship Program. Please note that there is a donation envelope in this issue of the magazine, right in the center. Please consider supporting the Foundation’s Scholarship Program as you make your end of year donations.
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NOVEMBER–DECEMBER 2022
CHAIRMAN’S MESSAGE
Each year I have the privilege of recognizing one Blue Diamond member for outstanding service and unwavering commitment to the overall success of the Blue Diamond cooperative. This year’s award goes to a grower who has been an excellent representative of California agriculture and of the almond industry, in particular. This grower’s family joined Blue Diamond as they planted their first orchard in the early 1980’s. Today, their three Blue Diamond contracts in Merced and Madera counties are all enrolled in OSIP at Triple Diamond levels. And they frequently host tourist groups to explain the benefits of production agriculture in California.
In addition to his commitment to sustainability and excellence as a Blue Diamond member, this grower has held numerous leadership positions in the ag industry and throughout his community. I am thrilled to name Dan Clendenin as this year’s recipient of the Chairman’s Ambassador of the Year award. Congratulations, Dan, and thank you for your contributions to Blue Diamond .
I wish you and your families a safe and healthy holiday season.
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ALMOND FACTS
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Southern CA (559) 977-7282
JOHN DUARTE At Large (209) 531-6874
TIM COITO Chico Sacramento Valley (530) 521-8733
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Blue Diamond Growers does not endorse or verify statements made by advertisers within this publication.
FIELD TEAM
Regional Managers
Vice President, Member Relations Mel Machado (209) 545-6222 – Salida (209) 531-6352 – Cellular Director, Member Relations (North) Ben Goudie (209) 225-0413 Director, Member Relations (South)
Glenn, Butte, Tehama, Placer, Yuba & Sutter Christine Ivory, (530) 518-9109
Colusa, Yolo & Solano John Aja, (530) 338-6440 Sacramento, Calaveras, Alameda & San Joaquin West of Austin Rd Ben Goudie, (209) 225-0413 Stanislaus County North of Tuolumne River & West of San Joaquin River Justin Elam, (209) 303-7306 San Joaquin East of Austin Rd; Stanislaus South of Tuolumne, East of San Joaquin River & West of Hwy 99; Merced North of the Merced River, West of Hwy 99 KC Stone, (209) 596-5375 Stanislaus South of Tuolumne River, East of 99 & Merced North of Merced River, East of 99 Brian Noeller, (209) 417-2010 Merced County, West of 99 & South of Merced River, East of 99, North of Hwy 140 Trent Voss, (209) 470-5981 Merced County, South of Hwy 140 & Madera County Kenny Miyamoto, (209) 323-8454 Fresno County West of Hwy 99 & North of Hwy 180 Ashley Correia, (559) 356-1584 Tulare County East of Hwy 99 & Fresno County East of Hwy 99, South of Hwy 180 Christopher Miller, (559) 310-5085 Kern, Kings, and Tulare County west of Hwy 99 Anthony Scudder, (559) 470-9731 Membership Office Jennifer Claussen – Membership Coordinator (209) 545-6225 Daniel Dekeyrel – Membership Assistant ( Delivery Tags ) (209) 545-6261 Grower Accounting Joe Lavagnino – Grower Accounting Manager (916) 446-8591 Kristie Ezell – Grower Accounting Coordinator (916) 446-8368 Erika Martin – Grower Accounting Assistant (916) 446-8385
Christopher Miller (559) 310-5085
Sutter
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ALMOND FACTS
2022 Grower Liaisons Committee Members
LEGEND
DISTRICT 1
DISTRICT 2
P. Samantha Lewis Chris Alves Luke Konyn Robert Thill Brian Erickson Stacy Gore Jerry Montz Steve Carlos Fred Montgomery Daniel Varner Greg Overton Darcy Jones Dan Cummings W. Howard Isom
Cathy Marsh Sid La Grande
Chairman Vice-Chairman Ex-Officio Director Appointed (Member-at-Large)
Joe Martinez Sarah Pippitt Maryann Warmerdam Don Bransford
Almond Board Alternate Almond Board Director Almond Board Chair
Ryan Finnen Brian Cahill Jake Driver Ron Tadlock Jake Spooner Amy Abele John Monroe
Elaine Rominger Gerald Rominger
DISTRICT 3
DISTRICT 4
Nick Alta Chris Rishwain Jack Dalton Don Van Vliet Rick Phillips Louie Tallerico
John Almeida Phil Mohler Jake Sonke Bryan Van Groningen Kevin Van Laar
Rick Morris Paul Adrian Wayne Bruns Tim Roos Mike Ballatore Dawn Price Ian Koetsier George te Velde
Mike Bogetti Allen Sipma Bert Van Ryn Rudy Mussi Zack Reinstein Dale Van Groningen John Thoming
For Grower Liaison contact information, please contact your regional manager.
Kevin Fondse Kenneth Roos
DISTRICT 5
DISTRICT 6
DISTRICT 8
DISTRICT 9
DISTRICT 7
Eric Heinrich Naomi A. Layland Alex Vanderstoel Ryan Valk John De Visser Manuel Furtado Lucas Van Duyn Grant Ardis Brandon Riddle Mark Giannini Dennis Bowers Stephen Van Duyn Neil Van Duyn
Christine Gemperle Don Clark
David Tolmosoff Robert Allen Jens Finderup RJ Maan Ryan Indart Lee Erickson Norman Pretzer
Mark Fanucchi Doug Kindig Ray Van Beek Mark Palla Gurcharan Dhillon Kyle Balakian Keith Gilbert Karamjit Jhandi Mark Tos Benjamin Wilson Paramjit Dosanjh
Frank Fagundes Jeffrey Baize Tim Lohman Rick Scoto Galen Miyamoto
Jared Serpa Hal Carlton Frank Borba Trent Voss Michael Mora Paul Danbom Eric Genzoli Rod Vilas
Joe Sansoni Jimmi Atwal
Steve Bains Mike Yager Neil Amaral Mason McKinney Blake Little Matt Efird George Goshgarian Aldo Sansoni
Louis Bandoni David P. Souza James Ohki Jason Chandler Dan Smith Dan Mendenhall
Rick Alvernaz Gary Marchy Nick Blom Charles Crivelli III Steve Vilas Bill Brush
Lisa Marroquin Kent Stenderup Clinton Shick
15
NOVEMBER–DECEMBER 2022
NEWS IN A NUTSHELL
112 th Annual Meeting Highlighted a Year of Record Profitability — Overcoming Inflation and Shipping Challenges
Out-going CEO, Mark Jansen, Conveys to Membership that the Co-op Strategy, Talent, and Financials Never Stronger
At the 112 th Blue Diamond Growers Annual Meeting held November 16, 2022 in Modesto, CA, Blue Diamond Growers President and CEO, Mark Jansen, highlighted the accomplishments of the past year, while recognizing remarkable headwinds the cooperative tackled through creative solutions, strategic partnerships, and world-class innovation.
“Although 2022 was marked by supply chain disruptions, the ongoing COVID-19 impact, and a continuing drought, we still fulfilled our mission and provided considerable competitive advantage with our grower returns,” said Jansen. “It could not have happened without the dedication of our 3,000 grower-owners or the 1,800 hard-working Blue Diamond team members.” Jansen further reported that despite the many challenges of the year, Blue Diamond was able to increase payments by an average of $.20 a pound and deliver a record competitive advantage in grower returns. In an additional highlight, he shared that to counter global transportation disruptions, the Blue Diamond Supply Chain Team worked with the Almond Alliance, California Department of Food and Agriculture, and the California
Governor’s Office of Business Development to build a new multi-port export strategy. This included implementing a pop-up yard at the Port of Oakland to stage products closer to the port to reduce wait times at congested terminals. In addition, the Supply Chain Team partnered on the launch of the first inland direct rail port from Fresno to the Port of Los Angeles. Based on these learnings, the team spearheaded the Almond Express train to carry containers from Oakland to Los Angeles, Long Beach and Norfolk, Virginia. The containers were then offloaded onto terminal docks for guaranteed export to Asia, the Middle East and India. “Navigating the global supply chain issues and devising creative solutions — while working alongside our partners — is just one way we remained true to our vision of delivering the benefits of almonds to the world,” said Jansen. Navigating the global supply chain issues and devising creative solutions — while working alongside our partners — is just one way we remained true to our vision of delivering the benefits of almonds to the world. -Mark Jansen, President and CEO, Blue Diamond Growers
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ALMOND FACTS
At the meeting, it was shared that during fiscal year 2022 Blue Diamond was able to: •Deliver its share of the California almond industry’s second largest crop of 2.8 billion meat pounds; closely following the record 3.1-billion-pound crop of 2020; •Develop new value-added uses for almonds through ongoing new product development via the Almond Innovation Center (AIC). As a result, AIC delivered $90 million in innovation revenue and 18.9 million pounds of innovation volume for Blue Diamond ; •Launch several new Blue Diamond branded consumer products including Extra Creamy Almond Breeze ® , Almond & Oat Almond Breeze ® (international markets) and new Snack Almonds (Chilé ‘n Lime, Probiotics, Elote, Korean BBQ, and Mash Ups); •Sell 83 million pounds of almonds as part of Blue Diamond ’s Snack Almond line alone, while remaining the No. 1 almondmilk in the plant-based milk category;
•Achieve 17% volume growth compared to the previous year for Almond Breeze ® products in more than 70 countries — via a global network of licensee partners; •Increase Global Ingredient sales from new customer applications of almond butter, almond flour, and almond protein powder; •Open new markets in Uganda, Ghana, Kenya, Bolivia and Argentina, while driving 33% volume growth in Asia. “ Blue Diamond has experienced substantial growth in recent years through thoughtful, smart decisions and actions,” said Dan Cummings, Chairman of the Board, Blue Diamond Growers . “With our focus on innovation, deeply established partnerships, and steadfast commitment to going above and beyond to deliver on consumer and retail demands, I expect this progress to continue well into the future.”
17
NOVEMBER–DECEMBER 2022
NEWS IN A NUTSHELL
In addition to sharing highlights from the past year, Blue Diamond also announced its continuing board members, including: • Dan Cummings , Chairman, District 1, Chico • John Monroe , District 2, Arbuckle • Dale Van Groningen , District 3, Ripon • George A. te Velde , District 4, Ripon/Escalon • Steve Van Duyn , Vice Chairman, District 5, Modesto/Ripon • Nick Blom , District 6, Turlock
Blue Diamond has experienced substantial growth in recent years through thoughtful, smart decisions and actions. -Dan Cummings, Chairman of the Board, Blue Diamond Growers
• Dan Mendenhall , District 7, Winton • Matthew Efird , District 8, Fresno • Kent Stenderup , District 9, Arvin
In conjunction with the Annual Meeting, Blue Diamond also released its “Partnering for a Sustainable Future” Annual Report and inaugural “Growing a Better Tomorrow” Sustainability Report. Both reports are available on the Blue Diamond website at the bottom of our Press page: www.bluediamond.com/press or via the QR codes below.
• Joe Huston , Director-at-Large, Monterey
• Kristin Daley , Director-at-Large, San Francisco
Scan with your smartphone’s camera to view the 2022 Sustainability Report
Scan with your smartphone’s camera to view the 2022 Annual Report
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ALMOND FACTS
NEWS IN A NUTSHELL
#WeAreBlueDiamond Social Media Activity Along with Blue Diamond ’s 112 th Annual Meeting held on November 16, the co-op also celebrated and thanked their employees on Veterans Day — who have served in the military — with a breakfast and a special gift. The celebrations continued with appreciation block parties at each site and by observing Manufacturing Day. Our teamwork makes this co-op the success it is! We also celebrated our growers and the legacy they leave to the next generation of almond farmers. Finally, we also helped with the Salvation Army’s Annual Kettle Kickoff luncheon that raises funds to support those in need during the holiday season.
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ALMOND FACTS
BLUE DIAMOND INVESTMENT PROGRAMS Current Investment Rates available as of December 1, 2022
Blue Diamond Growers offers members short-term and long- term investment programs. The objective of these programs is to serve as a competitive investment alternative for our members and provide Blue Diamond Growers with a steady source of funds. The interest rates effective December 1, 2022, for the program are listed here:
Long-Term Investment Certificate (LTIC) (Maturity Date of 6/30/2025)
Short-Term Investment Certificate (STIC)
Initial Investment Required
$1,000
$50,000
Interest Rate
4.75%
2.95%
(Variable, subject to change)
(Fixed rate)
For more information, contact your local Regional Manager, or Member Services at (209) 545-6225.
This summary does not constitute an offer to sell or a solicitation to purchase investment certificates. We will provide a package of documents for the programs to those members who are California residents and who express an interest in participating in the program.
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NOVEMBER–DECEMBER 2022
NEWS IN A NUTSHELL
Nog Snickerdoodle Whoopie Pies Cooking Time: 15 minutes Difficulty: Medium Servings: 24
Ingredients Cookies • 3/4 cup butter, softened • 11/4 cup granulated sugar, divided • 1/2 cup brown sugar, packed • 2 large eggs • 2/3 cup Almond Breeze® Almondmilk Nog • 11/2 teaspoons vanilla extract • 3 cups all-purpose flour • 1/2 teaspoon salt • 1/2 teaspoon baking soda • 3/4 teaspoon ground nutmeg • 2 teaspoons cream of tartar • 2 teaspoons ground cinnamon Filling • 1/2 cup softened butter • 1 ounce cream cheese, softened • 1 teaspoon vanilla extract • Pinch of salt • 3 cups powdered sugar • 1/4 cup Almond Breeze® Almondmilk Nog
Directions 1. Preheat oven to 350°F degrees and lightly grease a large baking sheet. 2. In a large bowl cream
together butter, 1 cup sugar, and brown sugar
until light and fluffy (2–3 minutes on high speed). 3. Add Almond Breeze®
Nog, eggs, and vanilla and mix until smooth. In a medium bowl whisk together flour, salt,
baking soda, nutmeg, and cream of tartar. 4. Add dry ingredients to wet ingredients and mix until combined. 5. In a small bowl whisk together remaining 1/4 cup sugar and cinnamon. Roll cookie dough into 1-inch balls, then roll in the cinnamon-sugar mixture and place 1-inch apart on prepared baking sheet. 6. Bake for 12–15 minutes until very lightly golden brown. Allow to cool completely on wire rack. In a large bowl cream together butter, cream cheese, and vanilla until very light and fluffy, about 2–3 minutes on high speed. 7. Add salt, and gradually add powdered sugar until completely incorporated. Add 1/4 cup nog and mix on high speed until light and creamy, about 3 minutes. Add more Almond Breeze® Nog as needed to reach a smooth, spreadable consistency (but not runny). 8. F lip half of the cookies up-side down, spread with filling, then top with a second cookie right-side up. Serve immediately or store in an airtight container at room temperature up to three days.
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ALMOND FACTS
Peppermint Hot Cocoa Cookies Cooking Time: 13 minutes
Difficulty: Medium Servings: 12
Ingredients Peppermint Fudge • 1/4 cup unsweetened cocoa powder • 2/3 cup Almond Breeze® Chocolate Almondmilk • 3/4 cups semi-sweet chocolate chips • 5 ounces chopped dark chocolate or 3/4 cup additional chocolate chips (70% dark recommended)
Directions 1. To make the peppermint fudge filling: In a medium bowl, melt together cocoa powder, Almond Breeze ® Chocolate Almondmilk, chocolate chips, dark chocolate, and butter in the microwave for 1–2 minutes, until smooth. Stir in the peppermint. You can also use a candy cane if you have one and stir into the hot chocolate mixture until half of it dissolves into the fudge. Transfer to a glass container. Freeze 30 minutes until firm. 2. R oll the fudge sauce into scant tablespoon-size balls and place on a parchment lined baking sheet. Freeze until firm, at least 30 minutes or overnight. 3. T o make the cookies: Preheat the oven to 350°F. Line a baking sheet with parchment paper. In a large mixing bowl, beat together the butter, brown sugar, and granulated sugar until combined. Beat in the eggs, one at a time, until combined. 4. Add the vanilla, beating until creamy. Add the flour and baking soda. Remove two of the frozen fudge balls and cut into four pieces. Fold chunks of fudge into dough, leaving streaks of fudge throughout. Roll the cookie dough into 2 tablespoon-size balls. 5. Place one frozen fudge ball in the center of the dough, pushing down gently into the dough. Add one additional tablespoon size cookie dough ball on top, sealing the dough around the fudge. 6. Place the balls 3-inches apart on the prepared baking sheet (don’t bake more than four cookies per baking sheet). Transfer to the oven and bake for 8 minutes. 7. Remove the pan from the oven and tap the baking sheet on the counter three times to flatten them down. 8. R eturn to the oven and bake another 4–5 minutes or until the cookies are just beginning to set on the edges, but still doughy in the center. Remove from the oven and tap the baking sheet on the counter 2–3 times to flatten them down again. 9. L et the cookies cool on the baking sheet. They will continue to cook slightly as they sit on the baking sheet. Enjoy warm!
• 2 tablespoons salted butter, cubed • 1 teaspoon peppermint extract
Cookies • 2 sticks (1 cup) salted butter, at room temperature • 3/4 cup dark brown sugar • 1/4 cup granulated sugar (use 1/2 cup for a sweeter cookie) • 2 large eggs, at room temperature
• 2 teaspoons vanilla extract • 21/4 cups all-purpose flour • 1 teaspoon baking soda
23
NOVEMBER–DECEMBER 2022
CORNERING THE MARKET
Whole Foods Meeting Blue Diamond goes to great lengths to market our growers’ almonds! This picture is from early fall in the orchard of a grower family during a meeting with Whole Foods buyers. Yes, they are wearing Blue Diamond hats! Pictured from left to right: Jim Leavitt – Director of Sales, Channel/Broker Accounts (Blue Diamond) Trey McLean – Category Manager – Functional Snacks (Whole Foods) Nicole Matuska – Category Manager – Cookie/Cracker (Whole Foods) Lori Yando – Sales Director – Natural Channel (Blue Diamond)
Blue Diamond Growers does not endorse or verify statements made by advertisers within this publication.
24
ALMOND FACTS
Blue Diamond ’s Strong International Presence
SIAL Paris Trade Show
Blue Diamond ’s International Consumer (IC) and Global Ingredients Division (GID) teams exhibited at SIAL-Paris trade show, demonstrating the strength of Blue Diamond in the international food industry. Blue Diamond invited guests to the residence of the U.S. Ambassador of France for a USDA reception.
Thailand’s Jae (Vegetarian) Festival
Philippines Market Visit
In store visibility and collaborations with local coffee shop chains.
25
NOVEMBER–DECEMBER 2022
GROWING THE GOODNESS
Blue Diamond Leadership Program Graduation Dinner
The evening of Tuesday, November 15 was a special night for 16 Blue Diamond growers and seven banking and industry representatives. It was the graduation recognition dinner for the 2020 and 2022 Blue Diamond Leadership Program. The program consisted of two, enriching day- long sessions and field days over the course of the year where participants learned about growing as a leader in the almond industry and how to be a positive voice for agriculture. We welcomed back those from the 2020 class to complete the program, which was postponed because of COVID-19.
Kent Stenderup (Leadership Program Chair) and Dan Cummings ( Blue Diamond Chairman of the Board) provided some encouraging comments over dinner. Graduates were acknowledged for their achievements and received recognition. Over the course of dinner, attendees enjoyed a panel discussing leadership styles, experiences, and advice from Blue Diamond leaders: Mark Jansen (President & CEO), Dean LaVallee (CFO & COO), Brian Barczak (SVP Global Supply), Laura Gerhard (VP Global Ingredients Division), and moderated by Kabir Tumber (Manager of Membership Development).
Congratulations to the Blue Diamond Leadership Program Class of 2020 and 2022 Graduates!
26
ALMOND FACTS
Giving the Gift of Blue for Blue Diamond’ s Giving Tuesday Match Benefiting FFA
On Tuesday, November 29, 2022, Blue Diamond Growers acted as a matching sponsor for Giving Tuesday for the California FFA Foundation. California FFA Foundation designates Giving Tuesday to raise funds for the iconic blue jackets for students who may not be able to afford one. For every $85 donated, you can gift a California FFA member with their very own jacket, tie or scarf. A jacket with their name will open doors and empower them to pursue the opportunities FFA and the agricultural industry provides them. As a partner to FFA, Blue Diamond matched donations up to $25,000 — that’s 294 jackets! “This is our sixth Giving Tuesday raising funds to give the Gift of Blue. Working with Blue Diamond Growers ,
the world’s leading almond brand, we’ve raised more than $314,000 and provided 4,126 jackets to FFA members throughout California,” shared Emily Rooney, President, Agricultural Council of California and California FFA Foundation Chair. “It’s rewarding to see our alumni and industry come together to make a difference for the next generation of the agriculture industry.” Even after Giving Tuesday concludes, you may still donate to help FFA students purchase their jackets. Let’s give every FFA member the chance to be part of the tradition.
Ensuring a sustainable future for agriculture is a priority for Blue Diamond Growers and we are proud of the impact our partnership with FFA has been able to make over the years. FFA is a world-class organization and by encouraging greater participation in Giving Tuesday, we are investing in the next generation of ag leaders and a bright, reliable future for California agriculture. —Dan Cummings, Board Chairman for Blue Diamond Growers
Scan the QR code below or visit www.calaged.org/give/donate to give online. You can also mail a check payable to the California FFA Foundation to: P.O. Box 186, Galt, CA 95632
Thank you for your support!
27
NOVEMBER–DECEMBER 2022
Blue Diamond Growers Foundation Scholarship available for 2023 − 2024 School Year
Scholarship Requirements: • Must currently live in Almond Growing Regions of California • Must intend to pursue college major in Agriculture related field, with specific emphasis on plant and crop-related majors • Must have 3.3 GPA or higher • Enrollment verification to a college or university offering a four-year degree will be required for disbursement of award funds • Application deadline: March 31, 2023
This is a one-time award. Applicants who have applied and not previously been awarded a Blue Diamond Growers Foundation Scholarship may re-apply. Scholarship is available to applicants entering any year of a four-year degree program.
apply.mykaleidoscope.com/scholarships/BDG23
Blue Diamond Growers Foundation Scholarship Fund Matching Grant
In Memory of Robert Weimer
Blue Diamond Growers will match donations to the Blue Diamond Growers Foundation scholarship fund up to $50,000 in memory of Robert Weimer. Bob Weimer, District 7 Board Director from 2004 to 2017, passed away on January 20, 2022. He was the inspiration behind the creation of the Blue Diamond Growers Foundation and served as the Foundation’s first President. Created in 2010, the Foundation has distributed over 175 scholarships to students who live in the almond growing regions of California and will attend a four-year degree program with a focus in agriculture.
To make a contribution: • Write a check and send in the envelope provided in this magazine, or mail to: Blue Diamond Growers Foundation Attention Finance Department 1802 C Street, Sacramento, CA 95811 • Go to www.bluediamondgrowers.com/scholarship-program and use the PayPal link. • All donations made between November 16 and December 31, 2022 will be matched, up to a total of $50,000. • All donations are tax deductible.
ADVOCACY REPORT
Agricultural Advocacy — It’s Not Just About Us
Some say agricultural advocacy in California is like a full-contact sport. Though an exaggeration, it’s not too far off-base at times.
What does infinite thinking look like in practice ?
It takes a tremendous amount of willpower, patience, and tenacity to pursue our advocacy goals in the State of California. The stakes are high for your cooperative, your own businesses and families, as well as the agricultural community statewide. Issues evolve quickly, and we live in one of the most progressive states in the nation. Oftentimes, we feel as if there’s a firehose of legislative and regulatory issues coming at us. Should we view this as a battle or take off our armor and see it as an opportunity ?
In 2022, Ag Council and Blue Diamond secured a few wins to benefit not only agriculture, but our workforce and our communities. This past year, union organizations joined with Ag Council in the pursuit to pass the Buy American Food Act, SB 490 by Senator Caballero (D-Merced). Why ? Because we knew if we worked together, we had a better chance of attaining something that no other state had done — establishing a Buy American procurement standard prioritizing the use of taxpayer dollars to purchase domestic food for public schools. After a tremendous effort by all involved, including resurrecting the bill at the end of session, it was signed into law this year. How did SB 490 get passed ? We made sure it wasn’t just about us. For the first time under Governor Newsom’s tenure, the Food Production Investment Program (FPIP) received funding in the state budget. After pursuing these dollars for the past few years, we were successful in attaining nearly $24 million in General Fund dollars for FPIP, which will soon be available for California-based food processors to leverage state grant dollars with private funds to implement energy efficiency projects to reduce greenhouse gas emissions. In addition to being positive for food processors, the vast majority of FPIP projects are in disadvantaged communities and bring about cleaner air to benefit human health. Put simply, it’s not just about us. Blue Diamond previously received a grant award through FPIP and the cooperative and growers understand the value it brings to our members. We are hopeful Blue Diamond and other Ag Council members will apply once the funds become available.
We believe the latter.
At Ag Council, our approach is not to simply look at what is in front of us, but to look at the long game, and ask, how can we help shape the issues ? In addition, who are the like-minded partners ? As part of the process, we believe an effective approach is to demonstrate that the policies we seek to implement are not just good for agriculture, they are good for all Californians. In other words, it’s not just about us, it’s about what’s best for everyone. This way of thinking is summarized in the book The Infinite Game by Simon Sinek. He said, “To ask, ‘What’s best for me’ is finite thinking. To ask, ‘What’s best for us’ is infinite thinking.”
To ask, ‘What’s best for me’ is finite thinking. To ask, ‘What’s best for us’ is infinite thinking. -Simon Sinek, The Infinite Game
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ALMOND FACTS
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